You Need to Know What You Don't Know
Cycle
20200217-20200223
Market
| Market | Index | This Week (%) | 1 Week Ago (%) | 2 Weeks Ago (%) | 3 Weeks Ago (%) |
|---|---|---|---|---|---|
| SSE Composite | 3039.67 | 4.2 | 1.43 | ||
| SZSE Component | 11629.7 | 6.54 | 2.87 | ||
| ChiNext Index | 2226.64 | 7.62 | 2.65 | ||
| Hang Seng Index | 27308.81 | -1.82 | 1.5 | ||
| HSCEI | 1085.78 | -0.34 | 0.98 | ||
| Red Chip Index | 4275.4 | -1.89 | 0.73 | ||
| Dow Jones | 28992.41 | -1.46 | 1.02 | ||
| Nasdaq | 9576.59 | -1.39 | 2.21 | ||
| S&P 500 | 3337.75 | -1.07 | 1.58 |
A-shares remain strong, with the turnover of the two markets exceeding one trillion for three consecutive days, and the turnover of the ChiNext hitting a record high. This week, the cumulative net inflow of Northbound funds was 6.493 billion yuan. Most other major global market indices fell, and the three major US stock indices fell sharply after hitting new highs.
The actively traded COMEX April gold futures achieved 6 consecutive positive days, hitting a 7-year high. Since last year, against the backdrop of a sharp rise in global equity markets, the increase in gold futures has also reached 18.63%, the largest increase in nearly 9 years. Funds turned to safe-haven assets.
The VIX index once rose to 16%, and fell back to 9.77% in late trading, rising more than 8% for 2 consecutive days.
Events
On the evening of February 21, Beijing time, FTSE Russell announced the results of the quarterly adjustment of its flagship index for February 2020. The changes involving A-shares have all been announced, with a total of 141 new A-shares included and 54 A-shares removed. This batch will take effect on March 23, 2020 (Monday opening), and will not be affected by the epidemic. It is expected to bring US$4 billion of passive capital inflows to A-shares.
The China Securities Regulatory Commission abolished 18 normative documents at one time to welcome the implementation of the new Securities Law on March 1. In addition to paving the way for the registration system, the new Securities Law has significantly increased the penalties for securities violations. For example, for fraudulent issuance, the fine has been increased from a maximum of 5% of the funds raised to double the funds raised; for information disclosure violations by listed companies, the fine has been increased from a maximum of 600,000 yuan to 10 million yuan; for the controlling shareholders and actual controllers of the issuer who organize or instruct to engage in false statements, or conceal relevant matters leading to false statements, the maximum fine is 10 million yuan, etc.
Stocks
Technology, 5G, and new energy vehicles are still market hotspots. After clearing Ganfeng Lithium (A+H) last week, I waited patiently for opportunities this week. Tesla’s cobalt-free battery news caused a short-term disturbance to the new energy battery market, and I will continue to wait for opportunities next week. Holding Grandshores Technology with peace of mind.
Funds
Keep positions unchanged.
Convertible Bonds
No new subscription, no position.
Positions
| Type | Code | Name | Current Dynamic |
|---|---|---|---|
| Stock | HK01647 | Grandshores Technology | Hold |
| Fund | F001790 | Cathay Smart Car | Hold |
| Fund | F000404 | E Fund Emerging Growth | Hold |
| Fund | F005911 | Guangfa Double Engine Upgrade | Hold |
| Fund | F519778 | BOCOM Data Economy New Power | Hold |
| Fund | F110026 | E Fund ChiNext ETF Feeder A | Hold |
| Fund | F519929 | Changxin Electronics Quantization Hybrid | Hold |
Thoughts
I learned two points this week:
The first comes from Charlie Munger: You need to know what you don’t know, because many people don’t know that they don’t know a lot of things.
The second comes from Stephen Covey: Many people spend their time on things they can’t control, yet they haven’t done well on the things they can control.
Published at: Feb 21, 2020 · Modified at: Jan 14, 2026
